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270                       Records of Bahrain

                                 D.O. No. C/sogz                       POLITICAL AGENCY
                                                                            BAHRAIN.
                                                                  The of November, 1947-




                                                    IZx/jyox/t^

                                         Please refer to your demi-official letter No.l783-S
                                  dated tho 13th October, 1947.
                                  2.     I regret to have to say that Belgrave has not con­
                                  firmed the presumption that both the 30$ dearness allowance
                                  and the new 20$ will be met from the Shaikh's share of the
                                  oil royalties. Indeed, he has stated that His Highness has
                                  now ordered that the whole dearness allowance at the rate
                                  of 50$ of the Civil List salaries is to be paid from general
                                  revenues. The first payment at tho new rate was made from
                                  them last month. ^ ^                  ^ r(       ^ *0
                                  3.     You will observe from the correspondence referred to
                        'Ranee    by ttaiioway/in his letter No. C/910, dated the 17th August,
                                  1946 - and particularly from prior's demi-official letter
                                  No.lSO-S dated the 13th February,.1943, and Weightman's
                                  demi-official letter No.C/757-10/1, dated the 7th October,
                                  1940 - that this is a question that has for some years past
                                  considerably exercised former Political Agents^ and Residents,
                                  and that a great deal of patient and sometimes unpleasant
                                   work has been done both to keep the Rulers' privy purse
                                   within' its present limits and to prepare the ground for an
                                   eventual reduction in the Ruler's share of the Oil Royalties
                                   from the third that he at present enjoys.
                                   4.    ‘It is apparent also that there are occasions in our
                                   dealings with the Rulers of Bahrain when some one has firmly
                                   to say 'No' to the ever-recurring demands for increases in
                                   their share of the State's income; and, in my view, this
                                   occasion is one of them. By arbitrarily increasing tho Civil
                                   List salaries at the expense of the State's general revenues
                                   the Ruler has disregarded all the principles that have been
                                   established by much patient work over a period of years; and,
                                   if this is condoned now, the whole basis of the present
                                   administration of Bahrain - which has been built up to certain
                                   standards by the expenditure of the major portion of the State's
                                   income on the administration, rather than by allowing the Ruler
                                   to spend it on himself and the Al Khalifah - will be undermined.
                                                                            /There is a...............


                         The Hon'ble Lt-col. Sir Rupert Hay,
                                                K.C.I.E., C.S.I.,
                                 Political Resident in the Persian Gulf,                 i - -rv/r.Yj
                                                          Bahrain.
                                                     3    l               NO..
                                                                                       RECORDS
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